Reserve Bank of Australia Governor Michele Bullock cautioned that a sudden reversal in global market optimism could trigger financial instability and hasten interest rate cuts. Speaking at the Australian Business Economists annual event in Sydney on Monday, she said investors seemed overly complacent despite economic and geopolitical risks. “People are thinking: well, you know, could it all end up very badly,” Bullock said, questioning “why credit spreads are really low, the risk premiums are really low.” Regarding Australia’s unemployment, she noted that despite the rise to 4.5% in September, the labour market remained “tight.”

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